The US dollar retreated from Wednesday's highs amid limited trading range as investors cautiously awaited US inflation data.
Major currencies traded slightly higher today, but no significant changes were recorded.
Selling of US dollars by state-owned Chinese banks helped the yuan rise from a one-month low even as the country slipped into deflation.
Data in the Asian session showed China's consumer prices (CPI) fell for the first time in more than two years in July.
Even so, rather than increasing interest in the safe-haven, it strengthened investors' view that the Chinese government may take additional stimulus measures to support the economy.
This pushed the Aussie and New Zealand dollars up slightly from their respective two-month lows against the greenback.
While euro trading also shows an increase, the price is still stuck below the 1.1000 level against the US dollar, while the pound remains hovering around the 1.2750 level.
The market's focus is now shifting to more important data, namely US consumer inflation which will determine the direction of the Federal Reserve's next policy.
At the time of writing, the dollar index, which measures the greenback's strength, was trading lower at around 102.35 against a group of major currencies.
